LIC has recently launched an online term plan called LIC’s eTerm Plan which can be purchased online without the intervention of any agent or advisor.

This plan works like a regular term plan once it has been issued. LIC’s eTerm Plan offers death benefit only, wherein it does not offer any maturity benefit and can be opted for high sum assured only. Thus, this term plan offers deferential premium rates for non-smokers opting for an assured sum of Rs 50 lacs or more.

LIC eTerm - Key Features:

  Online Term Plan with preferential premium rates for:

• Non Smokers
• Female Lives
• Pure Term Plan which means that it only offers death benefit and do not offers any benefit on maturity of the policy
• Traditional and a non-participating plan
• The nominated person gets to receive the death benefit in case of unfortunate death of the policyholder.

LIC eTerm - Benefits:

• High Sum Assured Term Plan with a minimum of:

        Rs 25 lacs for Aggregate Plan

        Rs 50 Lacs for Non-Smokers

• There is an option of choosing very long tenure of a maximum of 35 years
• This LIC policy can be continued till the age of 75 years
• As per Income Tax Act, Section 80 C and Section 10 (10 D) define income tax benefits on the premium paid to the policyholders. 

LIC eTerm - Product Details:

	Minimum	Maximum
Entry Age (Last Birthday)	18 years	60 years
Maturity Age (Last Birthday)	-	75 years
Policy Term (PT) in years	10 years	35 years
Premium Paying Term (PPT) in years	Equal to Policy Tenure
Premium Paying Frequency	Annual
Sum Assured	Rs 25 Lacs	No Limit

 

Details About Premium

Annual premium in Rupees for a Policy Tenure of 15 years. Basic Premium is mentioned below (Tax not included)

Age	Rs 50 Lacs Sum Assured	Rs 1CR Sum Assured
30 Years	6000	12000
40 Years	12400	24800
50 Years	28600	57200

 

LIC eTerm - Policy Details

Grace Period: 30 days’ grace period is allowed for premium payment. If policyholder fails to make payment within the grace period, the policy lapses 

Policy Termination or Surrender Benefit: There are no surrender benefits available in this plan

Free Look Period: If you would not be pleased with the coverage and terms and conditions of the policy, you have the option of cancelling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Inclusions

There are no loans available in this plan

Exclusions

When it comes to suicide committed within 12 months of policy inception, only 80% of premiums paid are returned to the nominee. When it comes to suicide within 12 months of revival, higher of 80% of premiums paid or acquired Surrender Value is paid.

Documents Required

The policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. A medical examination may be required in some cases, based on the sum assured and the age of the person.

 You may also like toread: LIC India Term Insurance Plans

Frequently asked questions:

Q 1: Does the amount of my premium changes during the tenure of the policy after purchasing the plan?

After issuing the policy, the premium remains the same throughout the policy term. However, this further depends on the regulations of the service tax as described by Indian Government.

Q 2: Can I nominate a minor as my nominee?

Yes, you can nominate a minor as your nominee.

Q 3: What are the death benefits offered to the nominee?

During any unfortunate death of the policy holder during the policy term the nominated person gets to receive the assured sum of the plan.

Q 4: What are the means of paying a subsequent premium?

To make the subsequent premium you can make use of debit card, credit card and net banking.

Q 5: Do I need to go for a medical test?

Requirement of a medical test depends on your existing health condition and requirements of the underwriting. All these medical tests are basic ones such as urine test, blood test and other such basic tests.

Q 6: When will my life cover plan get activated?

After accepting the proposal, your insurance cover with get activated.

Q 7: Will the insurance company cover me if I am travelling to a foreign country for business or leisure?

Yes, once your policy gets issued it covers your travel trips to a foreign country, be it for business or leisure.

Q 8: Where can I contact them to enquire about the status of my online policy application?

To contact them you can send mails at online_dmkt@licindia[dot]com or give a call on the toll-free number 1800-22-7717.

Q 9: How many riders are offered by this plan?

The policy does not offer any rider under this plan.

Q 10: Can I get a loan under this policy?

No, you are not allowed to get any loan under this plan.

Q 11: What if I stop paying the premium?

The policy lapses if you stop paying the premium.

Q 12: How can I revive a lapsed policy?

You can revive your lapsed policy within 2 years of the date of the first unpaid premium.

Q 13: What is the grace period offered by the policy?

A grace period of 30 days is allowed from the due date of the first premium.

Q 14: Can I take this plan for my parents?

No, you can take this plan only for yourself.

Q 15: Are the premium rates different for smokers and non-smokers?

Yes, the premium rates are different for smokers and non-smokers.